Download ECON 3080-002 Intermediate Macroeconomic Theory

ECON 3080-002
INTERMEDIATE MACROECONOMIC THEORY
UNIVERSITY OF COLORADO-BOULDER
SPRING 1995
Instructor: Donald L. Morrow
Office:
Econ 309B
Office Phone: 492-6875
E-MAIL: morrowd@rastro. colorado. edu
Required Texts: MACROECONOMICS-Fourth Edition, Robert J. Barro, 1994
The Age Of Diminished Expectations-Paul Krugman, 1994
The goal of this course is to prepare students for higher-level economics courses by providing them with
background in current macroeconomic theory. The objective will be to teach the microeconomic foundations
of the macroeconomy and use these tools to study such things as employment and unemployment, inflation and
the general price level, wages and interest rates, real GNP and business cycles and so forth. This approach will
provide a basic model for the macroeconomy that explains business cycle fluctuations based on the behavior
of jinns and households in a world where prices are free to adjust in order to clear markets. 1 This marketclearing model is at the heart of the "New-Classical" approach to macroeconomics.
Prerequisites: You are expected to have completed both Macroeconomics and Microeconomics as well as have
some knowledge of mathematics before taking this course. Graphical analysis will be the primary analytical
tool used, but there will be times that mathematical analysis will provide valuable insight.
Grading: Your grade will be determined by two midterm exams and a cumulative final exam as well as one
homework assignment and a short paper. You must pass the final exam to pass the course. 2
First Exam
75pts
Second Exam 75pts
Final Exam 150pts
Short Paper lOOpts
Homework 2x50pts
Total
500pts
MAKE-UP EXAM POLICY: Any exam missed for legitimate3 reasons will be replaced by a 7-10 page paper
on a current issue or theoretical topic in economics that is due before the end of the course.
1
This is in contrast to the Keynesian model where it is
assumed that prices and wages are sticky and that markets do not
always clear.
2
3
A passing grade is considered to be 60% or greater.
Legitimate reasons are limited to verified medical excuses
and emergencies of a family or personal nature .
Tentative Course Outline
Part I - The Basic Market-Clearing Model
Krugman Chapters 1-3
Barro Chapter 2 - Work Effort, Production, and Consumption - The Economics of Robinson Crusoe.
Chapter 3 - The Behavior of Households with Markets for Commodities and Credit.
Chapter 4 - The Demand for Money.
Chapter 5 - The Basic Market-Clearing Model.
Chapter 6 - The Labor Market.
First Midterm - Covering Chapters 2-6.
Tentative Date - 3/2/95
Part II - Inflation
Krugman Chapter 5
Barro Chapter 7 - Inflation and Interest Rates.
Chapter 8 - Money, Inflation, and Interest Rates in the Market-Clearing Model.
Part III - Business Fluctuations and Economic Growth
Barro Chapter 9 - Investment and Real Business Cycles.
Chapter 10 - Unemployment.
Chapter 11 - Economic Growth.
Second Midterm - Covering Barro Chapters 7-11 .
Tentative Date - 4/13/95
Part IV - International Economy
Krugman Chapters 4, 9-11
Barro Chapter 15 - World Markets in Goods and Credit.
Chapter 16 - Exchange Rates.
Final Exam - Covering Chapters 2-11, 15, and 16.
Date - TBA